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Question: Ward Doering Auto Sales is considering offering a special service contract that will cover the total cost of any service work required on leased vehicles. From experience, the company manager estimates that yearly service costs are approximately normally distributed. with a mean of 5150 and a standard deviation of $25.
a. If the company offers the service contract to customers fa a yearly charge of $200, what is the probability that any one customer's service costs will exceed the contract price of $200?
b. What is Wards expected profit per service contract?
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This question is asking you to compare the likelihood of your getting 4 or more subscribers in a sample of 50 when the probability of a subscription has risen from 0.02 to 0.06.] Talk about the comparison of probabilities in your explanation.
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